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Do the reverse lights get checked in the 'pre-check' for the practical restricted driving test? If so do they have to function or is it an instant fail?

The vehicle must be in WOF condition (current) at the time of the practical test otherwise you risk instant failure.

However, to answer your question, the reverse lights are not on the list of pre-drive checks but all lenses must be intact / undamaged and no white light should be displayed to the rear of the vehicle except when reversing or you face immediate failure.

If you are unsure whether the vehicle will pass the pre-checks then it's best to use an alternative vehicle that you can be sure will pass the checks.